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Strategies & Market Trends : Value Investing

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To: Sergio H who wrote (44936)	10/12/2011 1:32:11 PM
From: E_K_S	Read Replies (1) of 78686

Thank you for the AG report Links. I am not too interested in the monthly variations but more so of the longer trend. The grains and oil seed harvests are areas that BG and SEB seem to be investing in so these would be of interest. My new tracking position in AG GROWTH INTERNATIONAL INC. (Toronto: AFN.TO ) make a lot of the grain storage bins and conveyor systems (even those that load ships). They recently reported lots of growth in Russia and Australia too. I provided a link to their most recent June 2011 presentation in my earlier post. The interesting thing with BG is they have a JV with Solazyme, Inc. (SZYM) to process several variants of high valued oils from their oil seed milling facility in Brazil. Therefore, their productivity boost does not come from higher productions but rather from more efficient processing technologies. As a result, earnings are higher based on selling these higher margin oil variants from their new facility. Therefore, my value AG theme premise is not so much on "higher productions" but rather reducing costs (through more efficient equipment & systems) and integrating sustainable practices (like SEB has done w/ their bio-diesel plant in Colorado that uses the waste output from their HOG farm) to better use the inputs now used in production. Noble Group Ltd. (NOBGF.PK) has a sugar processing facility in Brazil that they recently expanded at a cost of $900M. This is the first facility to take the "waste stream" biomass of the plant to power generators that produce electricity sold to the local utility. All areas of their facility are profitable and sustainable. So the Value opportunity is in the process engineering that goes into building these next generation facilities. I have also created a new watch list titled "Processed Engineering" Companies that develop and engineer these systems. This would include utilizing new materials (ie catalysts) and technologies that make the sector/industry more efficient. The companies in my value list for this group (processed engineering) include: Dow Chemical Company (The) Comm(NYSE: DOW), Cabot Corporation Common Stock(NYSE: CBT) and OM Group, Inc. Common Stock(NYSE: OMG). finance.yahoo.com There are many other companies that I need to add to my list and cover several other sectors but are developing and/or engineering better and more efficient solutions to old problems. These systems can be installed all over the world (especially in China and Brazil). Most of the technologies are developed in the US and exported to countries around the world. EKS

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